Income Taxes (Tables)

12 Months Ended

Jan. 02, 2026

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) before Income Tax, Domestic and Foreign

Income (loss) from continuing operations before provision (benefit) for income taxes was as follows (in thousands):

	Years Ended
	2025			2024			2023
Domestic	$	(63,737	)	$	(52,859	)	$	(46,388	)
Foreign		(18,526	)		43,807			80,084
Income (loss) before income taxes	$	(82,263	)	$	(9,052	)	$	33,696

Schedule of Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes consisted of the following (in thousands):

	Years Ended
	2025			2024			2023
Current tax provision:
U.S. federal	$	—		$	—		$	—
State		22			27			21
Foreign		1,079			7,539			9,064
Total current provision		1,101			7,566			9,085
Deferred tax provision (benefit):
U.S. federal		—			3,738			3,306
State		—			137			12
Foreign		(2,916	)		(285	)		(54	)
Total deferred provision (benefit)		(2,916	)		3,590			3,264
Provision (benefit) for income taxes	$	(1,815	)	$	11,156		$	12,349

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory U.S. federal tax rate to the Company’s effective tax rate after the adoption of ASU 2023-09 was as follows (dollars in thousands):

	Year Ended
	2025
	Amount			Percent
US federal statutory tax rate	$	(17,275	)		21.0	%
State and local income taxes, net of federal income tax effect(1)		22			0.0	%
Foreign tax effects
Switzerland
Statutory tax rate difference between Switzerland and United States		1,898			(2.3	)%
Other		331			(0.4	)%
Other foreign jurisdictions		460			(0.6	)%
Effect of changes in tax laws or rates enacted in the current period		—			0.0	%
Effect of cross-border tax laws		587			(0.7	)%
Tax credits		62			(0.1	)%
Changes in valuation allowances		7,334			(8.9	)%
Nontaxable or nondeductible items
Equity compensation		5,259			(6.4	)%
Other		153			(0.2	)%
Changes in unrecognized tax benefits		(633	)		0.8	%
Other adjustments		(13	)		0.0	%
Effective tax rate	$	(1,815	)		2.2	%

(1)State taxes in California and Illinois made up the majority (greater than 50 percent) of the tax effect in this category.

Note 10 — Income Taxes (Continued)

Provision for Income Taxes (Continued)

A reconciliation of the statutory U.S. federal tax rate to the Company’s effective tax rate before the adoption of ASU 2023-09 was as follows (dollars in thousands):

	Years Ended
	2024						2023
	Amount			Percent			Amount			Percent
US federal statutory tax rate	$	(1,901	)		21.0	%	$	7,076			21.0	%
State and local income taxes, net of federal income tax effect		(330	)		3.6	%		440			1.3	%
Equity compensation		2,237			(24.7	)%		1,035			3.1	%
Foreign rate differential		(3,902	)		43.1	%		(7,611	)		(22.6	)%
Foreign income inclusion		9,659			(106.7	)%		16,922			50.2	%
Changes in valuation allowance		4,060			(44.9	)%		(4,233	)		(12.6	)%
Tax credits		(277	)		3.1	%		(930	)		(2.8	)%
Return to provision adjustment		100			(1.1	)%		(284	)		(0.8	)%
Changes in unrecognized tax benefits		1,450			(16.0	)%		—			0.0	%
Non-deductible expenses		163			(1.8	)%		134			0.4	%
Other		(103	)		1.2	%		(200	)		(0.6	)%
Total income tax expense	$	11,156			(123.2	)%	$	12,349			36.6	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets (liabilities) were as follows (in thousands):

	2025			2024
Deferred tax assets:
Accrued expenses	$	3,185		$	1,230
Stock-based compensation		5,271			6,103
Operating lease liability		6,439			6,466
Net operating loss and other credit carryforwards		50,662			44,083
Other deferred tax assets		2,305			2,776
Gross deferred tax assets		67,862			60,658
Valuation allowance		(54,556	)		(46,804	)
Total deferred tax assets	$	13,306		$	13,854
Deferred tax liabilities:
Property, plant, equipment and intangibles	$	(4,666	)	$	(5,976	)
Operating lease ROU assets		(4,706	)		(6,066	)
Foreign taxes		(569	)		(1,321	)
Total deferred tax liabilities		(9,941	)		(13,363	)
Total net deferred tax assets	$	3,365		$	491

Note 10 — Income Taxes (Continued)

Deferred Tax Assets and Liabilities (Continued)

The ultimate realization of deferred tax assets is dependent upon future generation of income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers projected future income and tax planning strategies in making this assessment. In addition, management considers all other available positive and negative evidence in its analysis, including existing profits in foreign jurisdictions as well as projected future foreign profits. As of January 2, 2026, the Company determined that it is more likely than not that the deferred tax assets of its foreign subsidiaries will be realized based on projected future taxable income and cumulative income over the most recent three-year period. As of January 2, 2026, the Company has incurred cumulative losses in its U.S. operation over the most recent three-year period. Based on the weight of available positive and negative evidence, management concluded that it is more likely than not that the deferred tax assets related to its U.S. operation will not be realized. Accordingly, the Company has maintained a full valuation allowance against its U.S. deferred tax assets.

Summary of Valuation Allowance

deferred tax asset valuation allowance activity was as follows (in thousands):

	Years Ended
	2025			2024			2023
Balance at beginning of period	$	(46,804	)	$	(42,744	)	$	(46,977	)
Release (recapture) due to incremental cash tax savings		—			(4,456	)		(3,318	)
Current year change due to deferred tax asset realization		(7,752	)		396			7,551
Balance at end of period	$	(54,556	)	$	(46,804	)	$	(42,744	)

Schedule of Net Operating Loss Carryforwards

As of January 2, 2026, the Company had U.S. net operating loss (“NOL”) carryforwards consisting of the following (in thousands):

	2025		Expiration Date
Pre-2018 federal NOL carryforwards	$	41,996	will begin to expire in 2027
Post-2018 federal NOL carryforwards		124,895	indefinite
State NOL carryforwards		56,265	will begin to expire in 2026

A

Schedule of Tax Credit Carryforwards

s of January 2, 2026, the Company had U.S. tax credit carryforwards consisting of the following (in thousands):

	2025		Expiration Date
Federal credit carryforwards	$	1,994	will begin to expire in 2030
State research tax credit carryforwards		1,012	indefinite
Federal foreign tax credit carryforwards		2,013	will begin to expire in 2028

Summary of Income Tax Examinations

The Company files income tax returns in the U.S. federal, various states and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The following tax years remain subject to examination:

Significant jurisdictions	Open Years
U.S. Federal	2022 – 2024
U.S. States	2021 – 2024
Foreign	2021 – 2024

Schedule of Income Taxes Paid Net of Refunds Received

The income taxes paid, net of refunds received, was as follows (in thousands):

	Year Ended
	2025
U.S. federal	$	—
State and local		25
Foreign
Switzerland		5,104
Japan		1,036
China		1,344
Other		321
Net income taxes paid	$	7,830

Summary of Impact of Tax Holidays

The Company operates under a tax holiday in Switzerland from 2020 through 2029, which consists of two consecutive five year periods: 2020 – 2024 and 2025 – 2029. The tax holiday is conditional upon the Company meeting specific activity and investment requirements as outlined by the Swiss Tax Authorities. The impact of this tax holiday is as follows (in thousands, except per share amounts):

	Years Ended
	2025			2024		2023
Tax impact related to tax holidays	$	(1,894	)	$	4,466	$	8,683
Impact of tax holidays on diluted earnings (loss) per share	$	(0.04	)	$	0.09	$	0.17

Summary of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, exclusive of interest, are included in other current liabilities as income taxes payable, is as follows (in thousands):

	Years Ended
	2025			2024
Balance at beginning of period	$	910		$	—
Increases (decreases) - tax positions in prior period		(220	)		910
Increases (decreases) - tax positions in current period		—			—
Cash settlement		(690	)		—
Balance at end of period	$	—		$	910